by Tiho Brkan, The Short Side of Long
Hedge funds are jumping back into US Dollar, while the price has made a lower high
Source: Short Side Of Long
Yet another Non Farm Payrolls Friday and yet another interesting price development, where traders speculative future action of the FOMC. Looking at the action in the US Dollar trend, the price of the index posted an outside reversal day on Friday. The powerful rally, which started in middle of 2014, has failed to make a higher high (so far) and has not traded below its 200 day moving average for over 12 months.
Moreover, hedge funds and other speculators have recently jumped back into the Dollar, while to me its looking increasingly likely that the greenbacks uptrend is about to experience a correction below the uptrend line. Of course opinions aren’t facts and none of these indicators necessarily guarantee a sell off. However, speculators have been given a signal (outside day reversal) and a price level to place a stop loss at (above 98.50 on the index or below 1.0850 in the Euro).
Good luck speculating!
Dollar hasn’t fallen below 200 day MA in 12 months, so watch for a mean reversion
Source: Short Side Of Long
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